Former SEC chief of staff Amanda Fischer faced backlash from the crypto community for comparing liquid staking to factors that led to the 2008 financial crisis. The SEC clarified that certain liquid staking activities are not considered security offerings. SEC Commissioner Caroline Crenshaw criticized the move, while Commissioner Hester M. Peirce supported it.

Fischer’s comment sparked backlash from the crypto community, with many seeing the SEC’s guidance as a win for decentralized finance. VanEck’s Matthew Sigel questioned the SEC’s stance on crypto oversight, leading to a clarification from Fischer. CEO Mert Mumtaz compared blockchain transparency to the opaque banking system, with others like lawyer Jason Gottlieb weighing in.

Liquid staking protocols have a total value locked (TVL) of $66.94 billion, up 14.5% year-to-date. Lido Finance leads with a market share of nearly 48%, while Binance staked ETH saw a 90% TVL increase. Despite a brief drop in April, TVL numbers have been steadily rising in the liquid staking sector.

Read more at Cointelegraph: Former SEC Chief of Staff Compared Liquid Staking To Lehman Brothers.